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The UK economy showed no growth in January, according to the latest figures from the Office for National Statistics (ONS). The gross domestic product (GDP) remained at 0%, a decline from a modest increase of 0.1% in December. This stagnation comes amid ongoing uncertainty following Chancellor Rachel Reeves's autumn budget and is exacerbated by rising global energy prices due to the escalating conflict in the Middle East.
The flatlining of the economy raises concerns about inflation, as higher energy costs are expected to contribute to increased living expenses for households. This situation has dashed hopes for a potential interest rate cut, which many had anticipated could provide some relief to consumers and businesses alike.
The economic outlook remains precarious as the ongoing US-Israel war with Iran continues to impact global markets, particularly in the energy sector. Analysts are closely monitoring these developments, as they could further influence inflation rates and economic recovery in the UK.
Source: www.theguardian.com – https://www.theguardian.com/business/2026/mar/13/uk-economy-flatlined-january-iran-war-global-energy-prices-inflation